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SNDR Shares Decline 4.1% Since Third-Quarter 2026 Earnings Release

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Key Takeaways

  • SNDR's Q3 adjusted EPS surged 141.7% to 29 cents, while revenues rose 9.1% to $1.59 billion.
  • Schneider's operating income jumped 76%, led by robust pricing, productivity gains & cost reductions.
  • SNDR raised its 2026 adjusted EPS outlook to $1.00-$1.10 and lowered its capital expenditure forecast.

Schneider National, Inc. (SNDR - Free Report) reported third-quarter 2026 adjusted earnings of 29 cents per share, in line with the Zacks Consensus Estimate. Earnings surged 141.7% from 12 cents per share in the year-ago quarter.

However, the company’s stock fail to impress the market, declining 4.1% since its earnings release on Oct. 29, 2026.

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Image Source: Zacks Investment Research

Operating revenues increased 9.1% year over year to $1.59 billion and surpassed the consensus estimate of $1.58 billion by 0.1%. Disciplined pricing, productivity improvements and cost reductions supported the quarter. Truckload revenues per truck per week improved 8% to $4,252.

Schneider National, Inc. Price, Consensus and EPS Surprise

Schneider National, Inc. Price, Consensus and EPS Surprise

Schneider National, Inc. price-consensus-eps-surprise-chart | Schneider National, Inc. Quote

Apart from improved year-over-year results, Schneider raised its 2026 earnings guidance. Management increased its full-year adjusted earnings per share (EPS) outlook to $1.00-$1.10 from 90 cents-$1.10.

Net capital expenditures are now expected to be between $325 million and $350 million, down from the prior range of $350-$400 million. Management cited higher proceeds from equipment sales. The outlook assumes continued contract rate recovery, productivity improvements and cost-saving benefits, with an effective tax rate of approximately 22%.

SNDR's Operating Profitability Improves

Income from operations surged 76% year over year to $62.1 million. Adjusted income from operations increased 66% to $63.8 million, reflecting stronger pricing, productivity gains and cost reductions.

The adjusted operating ratio improved 170 basis points to 95.3%. Adjusted EBITDA increased 13% year over year to $168.8 million, while adjusted net income surged 134% to $50.8 million.

Schneider's Truckload Earnings More Than Double

Truckload revenues, excluding fuel surcharge, remained nearly flat year over year at $624.8 million. Improved Network pricing and productivity offset lower volumes across Network and Dedicated operations. Total average trucks declined to 11,347 from 12,291 a year earlier.

Dedicated revenues declined to $427.8 million from $436.5 million, while Network revenues increased to $196.5 million from $187.4 million. Network revenue per truck per week jumped 21.4% to $4,605 from $3,792, highlighting stronger pricing and asset productivity.

Truckload income from operations surged 121% year over year to $43.7 million. Higher equipment utilization, acquisition-related synergies and gains on equipment sales supported profitability, partially offset by increased purchased transportation costs. The segment's operating ratio improved 380 basis points to 93%.

SNDR's Intermodal Earnings Climb

Intermodal revenues, excluding fuel surcharge, increased 2% year over year to $287.7 million. Revenues per order rose approximately 3%, reflecting pricing improvements, partially offset by lower volumes.

Intermodal income from operations increased 35% year over year to $22.6 million. Favorable freight mix and pricing outweighed higher purchased transportation expenses. The operating ratio improved 190 basis points to 92.1%.

Schneider also announced an agreement with Norfolk Southern to become the primary rail provider for its Eastern Intermodal network beginning Jan. 1, 2027. The partnership is expected to expand network reach, improve service and support long-term growth.

Schneider's Logistics Profitability Weakens

Logistics revenues, excluding fuel surcharge, increased 12% year over year to $372.5 million. Higher revenue per order drove the improvement, although lower brokerage volumes limited growth.

Segment income from operations declined to approximately breakeven from $6.4 million a year earlier. Increased purchased transportation costs and higher insurance expenses associated with a specific prior-year claim weighed on profitability. The operating ratio deteriorated 190 basis points to 100%.

SNDR's Cash Position Strengthens

Schneider exited the third quarter with cash and cash equivalents of $326.2 million compared with $292.7 million at the end of the second quarter. Long-term debt and finance lease obligations totaled $381.4 million, down from $385.6 million at the previous quarter's end.

Third-quarter net capital expenditures totaled approximately $80 million compared with $108 million a year earlier. Year-to-date free cash flow reached $195 million, broadly consistent with the prior year.

The company returned $52.1 million to shareholders through dividends during the first nine months of 2026. It also repurchased approximately 0.2 million Class B shares for $5.2 million under its $150million share repurchase authorization.

Currently, SNDR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performance of Other Transportation Companies

Alaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.

Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%.

Wabtec Corporation (WAB - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion.

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